The 681,455 refinance mortgages originated in the third quarter were 15 percent less than the previous quarter and 21 percent less than one year ago to the lowest level as far back as data is available (Q1 2000), according to ATTOM Data Solutions’ Q3 2018 U.S. Residential Property Mortgage Origination Report.
The refinance mortgages originated in the third quarter represented an estimated $175.1 billion in total dollar volume, down 14 percent from the previous quarter and down 21 percent from a year ago, ATTOM found. The market previously reached that level in the first quarter of 2014 but never has been lower.
“Rising mortgage rates continued to dampen demand for mortgages in the third quarter, particularly refinance mortgages,” ATTOM Senior Vice President Daren Blomquist said in a release. “There were some notable exceptions to that trend, primarily in markets affected by the hurricanes in the third quarter of 2017.”
ATTOM said refinance mortgage originations decreased from a year ago in 197 of the 225 metropolitan statistical areas it analyzed, including in Los Angeles (down 31 percent); New York (down 11 percent); Dallas-Fort Worth (down 5 percent); Phoenix (down 14 percent); and Atlanta (down 33 percent).
Refinance mortgage originations increased from a year ago in 28 of the 225 metro areas analyzed, including in Houston (up 69 percent); Miami (up 29 percent); Tampa-St. Petersburg (up 33 percent); San Antonio (up 3 percent); and Orlando (up 30 percent).
According to the report, purchase mortgage originations during the third quarter declined 2 percent from year ago, with lenders originating 892,760 residential purchase mortgages.
Residential purchase mortgage originations in the third quarter declined in New York (down 6 percent); Dallas-Fort Worth (down 5 percent); Chicago (down 14 percent); Phoenix (down 2 percent); and Los Angeles (down 14 percent), the report found.
Residential third-quarter purchase originations increased from a year ago in Atlanta (up 12 percent); Houston (up 3 percent); Miami (up 2 percent); Tampa-St. Petersburg (up 3 percent); and Nashville (up 1 percent), ATTOM said.
During the third quarter, the median downpayment on single-family homes and condos purchased with financing was $20,250, up 7 percent from the previous quarter and up 16 percent from a year ago to a record high as far back as data is available, the report found.